Promoting The Growth And Use Of Sustainable Palm Oil

1. www.rspo.org RSPO Promoting The Growth AndUse Of Sustainable Palm Oil

2. Outline What is palm oil? The need for sustainable palm oil The Roundtable on Sustainable Palm Oil (RSPO) Where we are today Where we go from here

3. What is palm oil? “It has the scent of violets, the taste of olive oil and a color which tinges food like saffron but is more attractive” Ca’da Mosto,15th century explorer,on discovering palm oil.

4. What is palm oil? Palm Oil... A highly versatile vegetable oil Used in many food and non-food products Produced in tropical countries Rapidly growing market share World’s top selling vegetable oil

5. What is palm oil? Palm oil is used in more than half of packaged supermarket products today Highly versatile

6. What is palm oil? World palm oil production has grown rapidly X 1 million tonnes Source: Oil World, MOPB, MPOC

7. What is palm oil? Source: Oil World, May, 2008

8. What is palm oil? Palm tree cultivation has expanded significantly X 1 million hectares Source: Oil World, May, 2008

9. What is palm oil? Source: Oil World, May, 2008

10. What is palm oil? RSPO Roundtable on Sustainable Palm Oil Source: Oil World, May, 2008

11. What is palm oil? Oil palms.. • are highly efficient producers of oil • require less land than other oil crops

12. What is palm oil? Average yield per year (tonnes of oil per hectare) Source: Oil World

13. Why sustainable palm oil? More than 1 million workers More than 3 million smallholders Many morehousehold members Millions of people are dependent on palm oil

14. Why sustainable palm oil? Social issues in oil palm cultivation • Land ownership conflicts • Worker’s rights and conditions • Treatment of smallholders

15. Why sustainable palm oil? Environmental issues in oil palm cultivation • Forest, peatland conversion • Climate change • Biodiversity loss

16. The Roundtable The Roundtable on Sustainable Palm Oil: Started in 2003, with 7 members Multi-stakeholder group Promotes the growth and use of sustainable oil palm products through global standards Among its principles: Respect for rights of land owners, farm workers, smallholders and their families No primary forests or high conservation value areas sacrificed for new palm oil plantations

17. The Roundtable Today*:249 RSPO members 67 oil palm growers 96 palm oil processors, traders 5 social, developmental NGOs 13 environmental NGOs 36 consumer goods manufacturers 24 retailers 8 banks and investors * September, 2008

18. Where we are today RSPO’s preparations: • Code of Conduct for members • Independent certification bodies • Principles, specific criteria and indicators for sustainable palm oil production • Supply chain certification systems • Guidelines on communication and claims

19. Code of Conduct: “Every member supports, promotes and works towards the production, procurement and use of sustainable palm oil” Grievance panel supervises compliance Where we are today

20. Where we are today Sustainability Principles: Transparency Use best practices Care for environment, natural resources,and biodiversity Consider rights ofworkers, smallholders Develop new plantings responsibly

21. Where we are today Specific social criteria and indicators: Rights to the land not legitimately contested Workers’ pay and conditions provide decent living The right to form trade unions is respected Health and safety plan implemented Smallholders treated fairly by mills

22. Where we are today Specific environmental criteria and indicators: Since November 2005, new plantings did not replace primary forests or high conservation value areas Erosion and degradation of soils are minimized Pollution and waste is reduced Use of fires is avoided

23. Where we are today Respecting diversity: national interprations of guidelines Papua New Guinea (April, 2008) Malaysia (April, 2008) Indonesia (May, 2008) Colombia / L. America (in progress) See: www.rspo.org

24. Plantation, mill certification procedure Where we are today Approved certification bodies listed on RSPO website Audit by certification body (1 month notice) Unit of certification: oil mill and suppliers Compliance with Principles, Criteria and Indicators Phase I: Document review Phase II: Field checks, stakeholder interviews Audit Report, summary published online

25. Where we are today The palm oil supply chain: • Many links • Potential for mixing Plantations Smallholders Mill Transport & Shipping Product Manufacturers Retailers Refiners & Blenders Ingredient Manufacturers

26. Where we are today Supply chain certification systems: monitoring ‘Identity preserved’:Sustainable oil kept apart, traceable to plantation ‘Segregation’:Mixing of sustainable palm oil batches is allowed ‘Mass Balance’:Mixing of sustainable and conventional oil allowed, if monitored administratively Designed and managed by Utz Certified,www.utzcertified.org

27. Where we are today Supply chain certification system: ‘Identity Preserved’

28. Where we are today Supply chain certification system: ‘Segregation’

29. Where we are today Supply chain certification system: ‘Mass Balance’

30. Where we are today Supply chain certification system: credit trading ‘Book and Claim’:- No tracking, tracing or monitoring of oil- Growers, end-users trade volume credits online Designed and managed by GreenPalm,www.greenpalm.org

31. Where we are today Supply chain system: ‘Book and Claim’

32. Where we are today Supply chain certification procedure • Verifies movement of oil through supply chain • Step-by-step documentation • Short-term: self-assessments • Long-term: third-party certification • Details: RSPO Supply Chain Certification Systems • See: www.rspo.org

33. Where we are today Communication guidelines and claimsSpecify communication on production, procurement and use of RSPO-certified sustainable palm oil • Use of RSPO logo • Claim details • Story-telling on supply chain model • On-pack, about-product, corporate communications

34. Where we are today title Two possible claims in communication, marketing: • “... contains [only/.. %] RSPO-certified sustainable palm oil” - Used with ‘Identity Preserved’, ‘Segregation’ systems • “... supports the production of RSPO-certified sustainable palm oil (equivalent to .. % of the palm oil utilized)” - Used with ‘Mass Balance’, ‘Book and Claim’ systems

35. Where we are today Claims and corresponding supply chain systems: #1 “This product contains [only/..%] RSPO-certified sustainable palm oil” ‘Identity Preserved’ ‘Segregation’ Specific RSPO-certified plantation Several RSPO-certified plantations

36. Where we are today Claims and corresponding supply chain systems: #2 “... supports the production of RSPO-certified sustainable palm oil (equivalent to ..% of the palm oil utilized) ‘Mass Balance’ Certificates ‘Book & Claim’ RSPO-certified + conventional plantations RSPO-certified plantations

37. Where we are today By end of 2008: ± 12 certification bodies approved by RSPO 350,000 hectares certified Four supply chain certification systems operational Capacity to supply 1.5 million tonnes of RSPO-certified sustainable palm oil per year

38. Where we are today DOWNLOAD CENTER ‘Key documents’ at www.rspo.org: • Statutes • Principles & Criteria • Criteria: National Interpretations • Code of Conduct • Certification Systems • Guidelines on Communication & Claims

39. Where we go from here RSPO’s ambitions: Grow supply of certified oil Grow demand for certified oil Grow RSPO membership Engage governments Engage and educate smallholders

40. Where we go from here Engaging more than 3 million smallholders They maintain 20% of acreage RSPO Task Force on smallholders Promotes smallholder interests within RSPO Raises awareness among smallholders Adapts RSPO standards and procedures Develops group certification protocol

41. Where we go from here • By end of 2009:Capacity to supply 3 million tonnes per year(±8% of production) • Ultimately,RSPO aims to see all the world’s palm oil produced in a sustainable way

42. Thank You! RSPO SecretariatKuala Lumpur, Malaysia WWW.RSPO.ORG Telephone : +60 3 6203 5969Email : rspo@rspo.org